No. of Recommendations: 3
I change my mind about QQQ vs. QQQE (or QQEW) on alternate weeks, despite the attraction of equal weight vs. cap weight.
The backtests show QQQ has better CAGR than QQEW with slightly higher volatility and better MaxDD and better sortino.
It is hard to tell how to interpret this. Generally, mid-caps did better at the beginning of this century, and large caps have done better about the last 10 or 15 years or so--about the time QQQE was introduced. Maybe it is a secular thing where mid-caps and large-caps rotate in and out of favor over fairly long periods of time. QQQE is certainly cheap compared to QQQ right now. Not sure what that holds for the future.
It would be very interesting to see a backtest of equal weight vs. Nasdaq over the last 30 years or however long that is possible to do.
